I've hit the big time baby!

So, my last post suggested I'm going solo.

And I've done that, so I've been preoccupied.

But now, I've clearly made the big time with a shout out in the October 2010 issue of Drugstore Canada magazine.

I guess my little blog was getting more attention than I thought (which is why I stopped blogging for a while).

When I have more time, I will put up another post.

I'm going solo.

That's right.

There's been a lot of talk (and crying) in Ontario about how the retail pharmacy industry is in trouble thanks to the new drug reform It's true, the drug reform will hurt the retail pharmacy industry. But let's be serious, does a company like Shoppers Drug Mart or Rexall really need more money? I mean these guys have more money than some small countries!

So, while all the pharmacy owners out there have been crying foul about how their bottom lines will be hit hard with the implementation of these changes, I've been quietly taking notes and figuring out how I can take advantage of this new shape of the industry.

And, I'm confident that opening up an independent pharmacy in the immediate future is the right move to make from a professional and business perspective.

There is still lots of dollars in the industry to be had. I know I won't be making billions like SDM, but even if I can take a small percentage of what one of their stores makes, then I will be doing just fine. My overhead and expenses will be lower because it will be just me, and I know for certain that I can out-customer-service a Shoppers or Pharma Plus Rexall with my eyes closed and hands tied behind my back any day of the week.

Don't get me wrong, this isn't going to be easy, I know. But the bottom line is that all these changes were inevitable...and this isn't the last major change to the industry in my lifetime. But it was now or never.

So here I go, wish me luck.

Long break...

Well happy 2010 world.

I took some vacation time. And since you were staring, tapping your fingers, and pacing back and forth, I decided to take a little longer than necessary. ;)

So, what have I been up to? Well, I'm still thinking about, thinking about, opening my own pharmacy. Being a pharmacist and never taking a business course ever in my life, not even in high school way back, learning how to go about starting a business has been...fun! So it may take me longer to understand concepts or terms that come second nature to many business-types. But I've read a couple books on business plans, which inevitably lead me to the internet to search out definitions and further explanations of terms and concepts. Did you know that pro forma means "completely made up"? Why can't they just call it a "made up financial statement" instead of a pro forma? That would be way easier for the average person to understand.

One of the main problems I foresee in this potential venture is the future of pharmacy in Ontario. The government in the past couple years has decided to make the drug rebate side of the business "transparent". So by doing this, they also thought it wouldn't look so good if the transparency showed that pharmacies are getting 60% rebates...so now pharmacies can only get 20% on drugs purchased for publicly funded people (seniors and welfare). In some cases, the reimbursement for some drugs was less, yes less, than the actual acquisition cost. WTF? This left the field wide open for the brand name drugs...so that's how pharmacies have been making it up over the past couple years. Now, they're discussing capping the brand name rebates to 20% or something also! What does this mean? It means the future of pharmacy as we know it in Ontario is in jeopardy. It means only the big box stores who buy in large enough volume to make a 20% rebate worth it, and who have a large enough front shop to supplement their sales with high-end cosmetics, will survive. It's almost like the government is angry with pharmacists for making a living over the last 40 years.

The problem I see, is that dispensing fees have been the "transparent" side of how pharmacists make money. The average consumer hates the dispensing fee and thinks a $9.99 fee or (gasp) $10.99 is absurd! The reason these fees haven't gone up over the past couple decades? You got it, cus pharmacies were making money in rebates and didn't bother passing on the inflation in the cost of dispensing to the customer in the form of a fee. What happens next? Well, if you raise your fee, you upset your customers and eventually lose business. If you don't, you'll eventually go broke anyway.

So, the state of pharmacy affairs in Ontario is uncertain and grim. Do I start a pharmacy or not?
Do I risk everything I have to start something I've been dreaming about for years with a 50:50 chance of making it. And even if I "make it" will it be "worth it". I mean, I love being a pharmacist, but let's be serious, this venture would be a business decision. Is it worth it?

Who knows. 2010 just got underway. I've got a feeling this year will be a tough one, but a memorable one.

So happy 2010 world.

Opening a new pharmacy

So, all this work makes me wonder if it's time.

Is it time to consider opening my own pharmacy?

What's the deal with new pharmacies nowadays anyways? How does one compete for business with the likes of Shoppers Drug Mart and Rexall (and the slowly being phased out, Pharma Plus)? Is it stupid to think I can compete for the pharmacy business? And without a medical clinic in my back pocket, is it stupid to think I will survive?

Now what types of things am I thinking about? Well, location, location, location. Where the heck would I open? The area I live is pretty saturated with chains, independents, banners, and other types of pharmacies. So how far do I want to open a business from my home? What's reasonable?

And what would my pharmacy look like and what would I sell? What are people looking for in an independent store? What do you think? How much money and inventory do I need? And how much time and planning should I allow for?

What about past relationships? Do I worry that people I used to work for/with will get upset if I open within a certain distance of them? I'm not one to burn bridges, but seriously, space is finite.

And how does a pharmacist market themselves once open? I mean, you can't leave the store during business hours, so how do you go visit doctors when they're more likely to be able to meet with you? Or do I dig my financial hole deeper and hire someone to cover me when I call on docs? Its a catch-22.

So, anyone out there have any tips or advice for me? Any good resources?

Anyone done it already and want to get in on this action? Or know anyone who wants to do it?

Is this the start of a new thought process? Or is this just a timely blog that will fall by the waist side in an hour?

I predict this is the start of something massive.